Adapt IT reports 80% rise in earnings per share

CLIENTS of KwaZulu-Natal-based Adapt IT would find it difficult to allow the service provider to exit their businesses as it has successfully embedded itself across all of its clients’ operations.

It is a model that provides the JSE-listed IT group with a significant competitive advantage.

Adapt IT yesterday reported an 80% rise in earnings per share to 6,19 cents, while profit before tax rose 12% to R7,2 million in its unaudited interim results to December 31, 2011.

Adapt IT CEO Sbu Shabalala told The Witness yesterday that another major competitive advantage is the group’s intellectual property, which provides it with annual licence fees from clients for the use of its software.

The group provides clients with solutions across various aspects of the operation, including finance, administration, human resources and production.

The group, which employs more than 300 people, consists of Adapt IT, ITS Holdings and ApplyIT.

It has operations in South Africa, Africa, Australia and Ireland.

Market conditions in the sugar industry, which the group services, remained tough on the back of the recent drought.

However, the group was able to secure a new client in the form of sugar company Addax, based in Sierra Leone. This partially offsets the drop in revenue emanating from other sugar businesses.

The stability of the higher education sector provided Adapt IT with significant financial benefits given its vast exposure to this sector both locally and abroad.

ITS Holdings’ client base consists of universities in South Africa, Africa, Ireland and Australia, as well as 13 further education and training colleges in South Africa.

ApplyIT has grown its exposure to the offshore resources sector, particularly in Australia and Africa.

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